Berkshire Doubles Down on Alphabet as Homebuilder Bets Pay Off

Berkshire Hathaway's latest portfolio update shows significant changes in its holdings.

The company, led by Warren Buffett as chairman and Greg Abel as CEO, drastically reduced its number of holdings in Q1. In Q2, Berkshire increased its position in Alphabet (NASDAQ: GOOGL) by 83%, making it the company's third-largest holding with a value of $37.8 billion.

This bet on Alphabet has been growing since Q1, with Berkshire now owning approximately 106 million shares of the company. The growth at Google Cloud is impressive, with cloud revenue increasing 82% year-over-year (YOY) in the last quarter. However, there are concerns about Alphabet's Gemini model falling behind ChatGPT and Claude.

Berkshire also increased its position in homebuilders, particularly Lennar (NYSE: LEN), by nearly 30%. The company added a small position in D.R. Horton (NYSE: DHI) but cut its positions in big names like Constellation Brands, Capital One Financial, Nucor, and Kroger.